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Dollar index up 0.3% against its peers

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Gold could retest the $3,500/oz mark - analyst

(Adds comments, update prices with EMEA morning session)

By Brijesh Patel

April 28(Reuters) - Gold prices fell more than 1% on

Monday, as the dollar held firm and hopes for de-escalation in

U.S.-China trade tensions dented appetite for safe-haven assets.

Spot gold was down 1.1% to $3,282.33 an ounce as of

0843 GMT. U.S. gold futures eased 0.2% to $3,292.80.

The dollar index, which measures the U.S. currency

against a basket of others, rose 0.3%, making gold less

attractive for other currency holders.

"Market sees trade tensions de-escalating and is less

concerned about the Fed independence, reducing the demand for

safe-haven assets for now," said UBS analyst Giovanni Staunovo.

"With the Fed still expected to cut interest rates later

this year, we still look for gold to retest the $3,500/oz mark."

U.S. President Donald Trump said talks on tariffs were

taking place with China.

Last week, the Trump administration signalled openness to

de-escalate the trade war between the world's two largest

economies that has raised fears of recession.

On Friday, China exempted some U.S. imports from its steep

tariffs, but quickly knocked down Trump's assertion that

negotiations were underway.

Gold, often used as a safe store of value during times of

political and financial uncertainty, rose to an all-time high of

$3,500.05 per ounce last week owing to trade tensions, central

bank demand and firm investment demand.

Apart from more clarity on U.S. trade policy, investors this

week will also be waiting on a series of U.S. economic data due

for release for cues on the Federal Reserve's rate cut path.

Key data releases this week include the U.S. job openings

report on Tuesday, Personal Consumption Expenditures on

Wednesday and the non-farm payrolls report on Friday.

Elsewhere, spot silver slipped 0.5% to $32.93 an

ounce, platinum gained 0.6% to $976.75 and palladium

was steady at $948.95.